1. Technical Field of the Invention
This invention pertains to a system and method for processing tax codes by company group in a front-end processor to bridge to a back-end purchasing system.
2. Background Art
When companies purchase goods, there are certain requirements for taxation. Taxation requirements differ by county, city, state, country and other locales, creating processing problems in paying those taxes correctly. Most companies use tax packages to determine taxability, based on where the goods are shipped; however, this does not take into account items that are purchased for research purposes or government contracts, which are not taxable. In certain companies, the people ordering the goods know the taxability and the shipping information, and can determine the taxability at the time of the order, but they are not usually the ones who interface with the tax packages; this is usually left to the Accounts Payable area.
There is a need in the art to provide an automated process for assigning taxability codes to purchases by company groups, and to automatically adapt to those company groups the processing of tax payments.
There is a further need to provide in a front end for the assignment of taxability codes, to thereby reduce the amount of work required on a back end process for resolving tax issues.
It is an object of the invention to provide an improved system and method for processing tax payments.
It is a further object of the invention to provide a system and method for assigning taxability codes to purchases by company groups, and to automatically adapt to those company groups the processing of tax payments.